Customer relationship management (CRM) is a business strategy that focuses on creating value for customers over the long term by managing interactions and relationships. However, CRM models face challenges like complexity, usability issues, and security concerns. CRM developed in response to shifts in business power toward customers in the 1980s, when supply exceeded demand and sellers had little pricing control. The benefits of CRM include reduced costs, increased customer satisfaction, organizational focus on external customers, customer growth, and long-term profitability.

2. Decline
in
Customer Relationship
Management (CRM) Model
Presented By: Anu Mishra
M.B.A 3rd Sem
B.U

3. Meaning of CRM
• Customer relationship management (CRM) is
a widely implemented strategy for managing a
company’s interactions with customers, clients
and sales prospects.
• Customer relationship management describes
a company-wide business strategy including
customer-interface departments as well as
other departments

4. Challenges:
• Complexity
• Poor usability
• Business reputation
• Security concerns

5. Purpose of CRM
• The focus is on creating value for the
customer and the company over the longer
term.
• When customers value the customer service
that they receive from suppliers, they are less
likely to look to alternative suppliers for their
needs.
• CRM enables organisations to gain
‘competitive advantage’ over competitors that
supply similar products or services.

6. Why did CRM develop?
CRM developed for a number of reasons:
• The 1980’s onwards saw rapid shifts in business
that changed customer power .
• Supply exceeded demands for most products .
• Sellers had little pricing power .
• The only protection available to suppliers of
goods and services was in their relationships with
customers .

7. Benefits of CRM
• Reduced costs, because the right things are being
done (i.e., effective and efficient operation)
• Increased customer satisfaction, because they are
getting exactly what they want (ie. meeting and
exceeding expectations)
• Ensuring that the focus of the organisation is external
• Growth in numbers of customers
• Maximisation of opportunities (e.g.: increased
services, referrals, etc.)
• Increased access to a source of market and
competitor information
• Highlighting poor operational processes
• Long term profitability and sustainability